Inflation Targeting and Exchange Rate Flexibility

Michael Kumhof

Working Papers from Stanford University, Department of Economics

Abstract: December 2000

This paper evaluates the performance of exchange rate, inflation and money targeting under terms of trade, real interest rate, foreign inflation and money demand shocks. Inflation targeting must target the price level as opposed to forward looking inflation for uniqueness of perfect foresight equilibria. Its performance is very similar to exchange rate targeting. Money targeting displays real exchange rate flexibility in response to foreign shocks, while exchange rate and inflation targeting permit accommodation of money demand shocks. Because of distortions temporary output booms are generally welfare improving, which makes welfare rankings among policies dependent on the direction of shocks Keywords: intellectual property rights, copyright, sui generis protection of expressive material, economics of information-goods, open science, "fair use," scientific databases.

JEL Classification: H4, K39, O31, O34 -->

Keywords: intellectual property rights; copyright; sui generis protection of expressive material; economics of information-goods; open science (search for similar items in EconPapers)
JEL-codes: H4 K39 O31 O34 (search for similar items in EconPapers)
Date: 2000-12
New Economics Papers: this item is included in nep-ifn
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www-econ.stanford.edu/faculty/workp/swp00023.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www-econ.stanford.edu/faculty/workp/swp00023.pdf [301 Moved Permanently]--> https://www-econ.stanford.edu/faculty/workp/swp00023.pdf [307 Temporary Redirect]--> https://economics.stanford.edu//faculty/workp/swp00023.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wop:stanec:00023

Access Statistics for this paper

More papers in Working Papers from Stanford University, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Krichel ().